This page is about my role as a Licencsed Financial Advisor with Sun Life Financial
16 FB users likes Reza Farahmand-Sun Life Financial, set it to 40 position in Likes Rating for Richmond Hill, Ontario in Bank/financial services category
Happy Nowrouz (Persian New Year) to all who celebrate this ancient tradition across the globe.
10 reasons and misunderstanding that stops people from buying insurance: 1. It is not required. !لازم ندارم 2. Do not Believe in buying bInsurance !اعتقادی به بیمه ندارم 3. Cultural Heritage does not Value Insurance پولش میره تو جیب شرکتهای !غربی 4. Uneducated on Financial Risks نا آشنایی و عدم آموزش در ارتباط با ریسکهای و تاثیرات مالی 5. Denial of Known Risks ! برای من اتفاقی نمی افته 6. Misunderstanding the Risks فهم نادرست از ریسکها 7. Intangible Product محصولی با ارزش نامشخص 8. Confused about Insurance Choices سرگردانی در مورد انواع بیمه ها 9. Unfavourable Attitude toward Insurance Companies احساس نامطبوع در مورد شرکتهای بیمه 10. Lack of Funds نداشتن درآمد کافی
Permanent life insurance Permanent life insurance is an excellent choice if you want lifelong coverage and equity in the form of a cash value over time. Key advantages of permanent insurance over term insurance Permanent insurance costs are usually guaranteed when you first purchase the policy. Some permanent insurance plans allow you to pay for a limited number of years, then never again. Imagine …you could buy insurance when you're 40, finish paying the premiums when you're 50, and be fully covered for the rest of your life. In contrast, term insurance is virtually always "pay as you go" and you'll be paying premiums while you have the coverage. Permanent life insurance premiums can be guaranteed level for life (they don't increase as you age, even if your health changes), or they can vary depending on the permanent insurance plan you choose.
What is term life insurance? Term life insurance provides temporary protection for temporary needs. It also has some flexibility, so you can adjust your insurance as your needs change. You can choose between: Term life insurance - provides coverage for one person Joint term life insurance - one policy that covers 2 people who share a joint risk (e.g. a mortgage) Who is it for? Term life insurance is a popular choice for: individuals focused on affordability and flexibility, small business owners facing debts or significant start-up costs, business owners with complex needs like key person protection or buy/sell agreements, and people with mortgages or other temporary debt.
3 methods used to calculate attained age: • actual age of life insured as of his or her last birthday • actual age of life insured as of his or her next birthday • actual age of life insured as of his or her nearest birthday
Some insurance terminologies: Life insured: person whose death triggers death benefit Policyowner: owner of insurance contract Insurer: insurance company Beneficiary: recipient of death benefit Face value: amount of insurance originally applied for Premiums: payments that keep coverage in force
Uses of insurance beyond income replacement: • paying off liabilities such as a mortgage or line of credit • paying off tax liabilities on death • paying off capital gains tax and other estate liabilities • funding a charitable bequest • funding a trust for a dependant child
3 main risks that insurance is designed to offset are: • risk of death: mortality risk • risk of disability: morbidity risk • shortage of funds during retirement
Some Insurance terminologies: What is insurance? Insurance provides protection against the financial loss that would otherwise result if a specified event occurs Who is the Policy owner? insured pays one or more premium to insurer , in exchange for the promise that the insurer pay a benefit to a designated beneficiary if a specified person ( the life insured) experiences the insured event ( e.g. death, disability, critical illness) What is a risk class? A group of people in which all members share a similar risk of claim ( 35 year old non-smokers, 45 years old smokers, etc.) Basic classifications for Life insurance:, age, gender, smoker/non-smoker. A non-smoking woman will pay about half as much for life insurance as a male smoker of the same age.
Prepare for unexpected life events Disability, long-term illness, the death of a spouse and the special needs of children or aging parents — these are the kinds of personal life events that can affect your financial security and well-being. In addition, external sources of income or safety nets can change without warning. Your plans should include contingencies in the event of job loss, reduction of retiree benefits or changes to Social Security and Medicare. Build a cash reserve If an unexpected life event occurs, it's likely to increase current expenses or interrupt your income. The goal is to have a cash reserve built up to provide a cushion against the interruption, and prevent the need to tap into long-term investments. During your working years, the cash reserve should be enough to cover at least three to six months of living expenses. As you get closer to retirement, you may want to shift your portfolio towards more income-generating investments and a larger cash reserve. Once you're no longer earning a paycheck, it's wise to have ready access to your money. Tips for preparing for unexpected life events Maintain a cash reserve that covers at least three to six months of expenses. Make sure the beneficiaries on all of your accounts are up-to-date. Provide your beneficiaries with the information necessary to access your accounts, and contact information for your lawyer and financial advisor. Look into long-term care insurance and disability income insurance as early as possible — typically, the younger and healthier you are, the lower the cost. Knowing that you have a plan in place to handle unforeseen events can give you confidence and peace of mind.